Slovar Limited — Annual Report 2009

Aug 30, 2009

MONEY 3 CORPORATION LIMITED (ABN: 63 117 296 143)

PRELIMINARY FINAL REPORT

30 June 2009

APPENDIX 4E

Head Office: Unit 4, 60-70 Mahoneys Road Thomastown VIC 3074

Registered Office: Level 1, 48 High Street Northcote VIC 3070

MONEY 3 Corporation Limited

year ended 30 June 2009

COMMENTARY ON PRELIMINARY RESULTS FOR THE YEAR ENDED JUNE 2009

In a year with so much uncertainty and contraction in the consumer market, the directors of MONEY3 are pleased to announce another year’s successful results.

Snapshot:

• ⇒ Total Revenue increased by 20.2% from $7.5M to $9.0M

• ⇒ EBITDA up 6.7% from $2.1M to $2.3M

• ⇒ Net Profit after tax of $1.0M

• ⇒ EPS 3.51 cents

• ⇒ Reduced borrowings from $1.1M to $600K on a Loan Book of $8M

• ⇒ Cash at the end of the period increased from $590K to $1.2M

• ⇒ Opened seven new branches in VIC, TAS and NSW

• ⇒ New website generating loans Australia wide

Full Year Results

Gross revenue increased considerably as a result of opening seven new branches and focus on lending policy in the branch network and Loan Centre. The impact of this focus has sped up the use of money, improved cash position and lessened risk.

The opening of seven new branches in December 2008 incurred a net trading loss of $356,578. While they are currently not profitable it is anticipated these branches will contribute positively from FY2010.

Dividend

The Board will make a decision on dividend subject to completion the 30 June 2009 financial report by the company and audit of the financial statements which is currently in progress.

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MONEY 3 Corporation Limited

year ended 30 June 2009

COMMENTARY ON PRELIMINARY RESULTS FOR THE YEAR ENDED JUNE 2009 (CONT’D)

Future

Head Office

MONEY 3 has established its Head Office in Thomastown centralising Debt Recovery, Accounts Department and allowing space for Loan Centre expansion.

Loan Centre

While the Branch network will continue to expand and be more profitable, the Loan Centre continues to be the fastest growing segment of the company. The establishment of a Head Office has provided both oversight and room for expansion of the Loan Centre. With an increasing demand from the website, branch and brokers the only limitation to growth in the Loan Centre is funding.

Bad Debt

The re-location of Debt Recovery to the Head Office with a more streamlined process will see an increase in collections from our internal and external debt recovery division. Improvements in the economic climate, procedures and oversight will see a reduction in write off in the future.

Online Applications

In March 2009 MONEY3 launched a new web site. We are delighted to say this venture has produced better than expected results. The number of on-line applications has created a new arm of business referring loans to both the branch network and Loan Centre.

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MONEY 3 Corporation Limited

year ended 30 June 2009

APPENDIX 4E

Preliminary Final Report to the Australian Stock Exchange

Name of Entity	Money3 Corporation Limited
ABN	63 117 296 143
Year Ended	30 June 2009
Previous Corresponding Reporting Period	Year ended 30 June 2008

Results for Announcement to the Market

Results for Announcement to the Market	Results for Announcement to the Market	Results for Announcement to the Market
			$		Percentage increase /(decrease) over previous corresponding period
Revenue from ordinary activities			$9,013,813		20.2%
Profit from ordinary activities after tax attributable to members			$1,033,926		(13.8%)
Net profit for the period attributable to members			$1,033,926		(13.8%)
Dividends (distributions)	Amount per security			Franked amount per security
Final Dividend	TBA			TBA
Interim Dividend	1.5 cents			1.5 cents
Record date for determining entitlements to the dividends (if any)		TBA
Brief explanation of any of the figures reported above necessary to enable the figures to be understood: For an explanation of revenue and profit from continuing operations, see commentary on results included in the accompanying preliminary final report.

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MONEY 3 Corporation Limited

year ended 30 June 2009

Dividends

Dividends
Date the dividend is payable	TBA
Record date to determine entitlement to the dividend	TBA
Amount per security	TBA
Total dividend	TBA
Amount per security of foreign sourced dividend or distribution	N/A
Details of any dividend reinvestment plans in operation	TBA
The last date for receipt of an election notice for participation in any dividend reinvestment plans	TBA

NTA Backing

NTA Backing
	Current Period	Previous corresponding period
Net tangible asset backing per ordinary security(cents per share)	28.1	26.7

Control Gained Over Entities Having Material Effect

Name of entity (or group of entities)	N/A
Date control gained	N/A
Profit / (loss) from ordinary activities after tax of the controlled entity since the date in the current period on which control was acquired.	N/A
Profit / (loss) from ordinary activities after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period.	N/A

Loss of Control Gained Over Entities Having Material Effect

Name of entity (or group of entities) N/A

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MONEY 3 Corporation Limited

year ended 30 June 2009

Details of Associates and Joint Venture Entities

Name of Entity (or group of entities) N/A

Foreign Entities Accounting Framework

For foreign entities provide details of which accounting standards have been adopted (e.g. International Accounting Standards)

N/A

Audit/Review Status

Audit/Review Status	Audit/Review Status	Audit/Review Status	Audit/Review Status
This report is based on accounts to which one of the following applies: (Tick one)
The accounts have been audited		The accounts are in the process of being audited	�
If the accounts are subject to audit dispute or qualification, a description of the dispute or qualification:N/A

Attachments Forming Part of Appendix 4E

Attachment #	Details
1	Income Statement
2	Balance Sheet
3	Statement of Changes in Equity
4	Cash Flow Statement
5	Notes to the Preliminary Final Report

Signed By (Director/Company Secretary)
Print Name	Kang Hong Tan
Date	31 August 2009

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MONEY 3 Corporation Limited

year ended 30 June 2009

INCOME STATEMENT

FOR THE YEAR ENDED 30 JUNE 2009

Continuing Operations Revenue Other income Total revenue Expenses from operating activities: Administration Employment Advertising and sales Occupancy costs Bad debts Depreciation and amortisation Loss on disposal of fixed assets Communication Legal and professional Interest expenses Profit before tax Income tax expense Net profit attributable to members Earnings per share (cents per share) Basic profit/(loss) from continuing operations Diluted profit/(loss) from continuing operations	Consolidated Consolidated Year ended Year ended 30 June 2009 30 June 2008 $ $ 9,000,787 7,496,405 13,026 4,326
	9,013,813 7,500,731
	503,733 391,178 3,286,724 2,930,168 405,004 335,077 727,004 499,202 1,417,093 825,534 327,064 229,398 - 29,194 156,967 115,125 261,754 260,705 103,727 84,174
	1,824,743 1,800,976 (790,817) (601,516)
	1,033,926 1,199,460
	3.51 cents 4.37 cents 3.51 cents 4.37 cents

The above income statement should be read in conjunction with the attached notes.

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MONEY 3 Corporation Limited

year ended 30 June 2009

BALANCE SHEET

AS AT 30 JUNE 2009

Current assets Cash and cash equivalents Trade and other receivables (Note 5) Other assets Total current assets Non-current assets Trade and other receivables (Note 5) Other Property, plant & equipment Intangible assets Deferred tax assets Goodwill Total non-current assets Total assets Current Liabilities Trade and other payables Borrowings Hire purchase Current tax payables Other Provisions Total current liabilities Non-current liabilities Provisions Borrowings Total non-current liabilities Total current liabilities Net assets Equity Issued Capital Share Option Reserves Accumulated profit Total equity	Consolidated Consolidated 30 June 2009 30 June 2008 $ $ 1,175,708 591,200 7,183,508 6,877,875 4,088 39,915
	8,363,304 7,508,990
	878,303 997,343 79,089 33,118 1,030,756 989,470 - 88,273 178,973 312,683 15,323,487 15,323,487
	17,490,608 17,744,374
	25,853,912 25,253,364
	568,923 528,096 600,000 1,075,000 8,513 8,513 246,957 555,449 225,235 180,461
	1,649,628 2,347,519
	52,463 28,072 62,244 70,468
	114,707 98,540
	1,764,335 2,446,059
	24,089,577 22,807,305
	22,516,008 21,144,955 449,069 282,402 1,124,500 1,379,948
	24,089,577 22,807,305

The condensed balance sheet should be read in conjunction with the attached notes.

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MONEY 3 Corporation Limited

year ended 30 June 2009

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2009

Opening balance at 1 July 2007 Total recognised income and expense for the period Issue of shares on DRP Increase in equity compensation reserve Transfer to/(from) deferred tax reserve Dividend paid Closing balance at 30 June 2008 Opening balance at 1 July 2008 Total recognised income and expense for the period Issue of shares on DRP Issue of shares to sophisticated investors Issue of shares to employee Issue of shares to repay loan Increase in equity compensation reserve Transfer to/(from) deferred tax reserve Dividend paid Closing balance at 30 June 2009	Issued capital Retained earnings Reserves Total equity $ $ $ $ 20,893,237 1,355,885 115,736 22,364,858 - 1,199,460 - 1,199,460 251,718 - - 251,718 - - 166,666 166,666 - - - - - (1,175,397) - (1,175,397)
	21,144,955 1,379,948 282,402 22,807,305
	21,144,955 1,379,948 282,402 22,807,305 - 1,033,926 - 1,033,926 361,053 - - 361,053 900,000 - - 900,000 10,000 - - 10,000 100,000 - - 100,000 - - 166,667 166,667 - - - - - (1,289,374) - (1,289,374)
	22,516,008 1,124,500 449,069 24,089,577

The consolidated statement of changes in equity should be read in conjunction with the attached notes.

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MONEY 3 Corporation Limited

year ended 30 June 2009

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2009

.

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest paid Income Tax paid (Increase) decrease in operating assets: Net funds advanced to and repayments from customers for loans Net cash used in operating activities Cash flows from investing activities Payment for property, plant and equipment Sale of property, plant and equipment Payment for Computer System Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of shares Repayment of Hire Purchase Proceeds of borrowings Dividend paid Net cash provided by financing activities Net increase/(decrease) in cash held Cash at the beginning of the period Cash at the end of the period	Year ended Year ended 30 June 2009 30 June 2008 $ $ 8,750,415 6,670,870 (5,028,693) (4,212,872) 13,026 4,326 (103,727) (84,174) (965,599) (789,671)
	2,665,422 1,588,479 (1,399,286) (1,754,131)
	1,266,136 (165,652)
	(280,076) (257,643) - 89,000 - (25,273)
	(280,076) (193,916)
	1,010,000 - (8,225) (93,882) (475,000) 1,075,000 (928,327) (923,679)
	(401,552) 57,439
	584,508 (302,129) 591,200 893,329
	1,175,708 591,200

The condensed cash flow statement should be read in conjunction with the attached notes.

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MONEY 3 Corporation Limited

year ended 30 June 2009

NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009

INTRODUCTION

The preliminary final report covers Money3 Corporation Limited and its controlled entities. This report is based on financial statements that are in the process of being audited.

NOTE 1. Basis of preparation of preliminary final report

This preliminary financial report does not include all of the notes of the type normally included in an annual financial report. This preliminary final report has been prepared in accordance with the measurement and recognition requirements of Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Accounting Interpretation and the Corporations Act 2001.

The accounting policies and methods of computation adopted in the preparation of the preliminary financial report are consistent with those adopted and disclosed in the company’s annual financial report for the year ended 30 June 2008 and the half year ended 31 December 2008.

NOTE 2. Revenue

Continuing operations: Revenue from operating activities Loan fees (a) Cheque cashing fees Other services Revenue from non-operating activities Interest income from financial institutions Total revenue from continuing operations	Consolidated Consolidated 2009 2008 $ $ 7,930,243 6,717,469 858,300 568,871 212,244 210,065
	9,000,787 7,496,405
	13,026 4,326
	9,013,813 7,500,731

(a) In prior years revenue still to be earned from fees and charges were included in Loan fees and Bad debts expense when a debt was written off. This treatment is inconsistent with the policy of recognising revenue on loan fees on a reducing balance basis over the loan period. The effect of this treatment in 2008 was an overstatement of $305,206 in both Loan fees and Bad debts written off. The comparatives have been adjusted accordingly and there is no impact on profit.

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MONEY 3 Corporation Limited

year ended 30 June 2009

NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009

NOTE 3. Expenses included in net profit/(loss) from continuing operations

Profit/(Loss) before income tax has been determined after:

Employment: Salary and employee benefits expense Share based payment Contributed superannuation Other employment costs Total Employment costs Depreciation and amortisation: Leasehold improvements Motor vehicles Furniture, Equipment and Fittings Total depreciation and amortisation Operating lease Rent Finance costs (a) Interest on bank overdrafts and loans Interest on obligations under finance lease Total finance costs (Gain) / loss on disposal of assets	Consolidated Consolidated 2009 2008 $ $ 2,514,785 2,174,470 166,667 166,666 263,505 291,521 341,767 297,511
	3,286,724 2,930,168
	83,854 73,460 33,550 39,629 209,660 116,309
	327,064 229,398
	515,010 339,472
	96,685 78,939 7,042 5,235
	103,727 84,174
	- 29,194

(a) The weighted average interest rate on funds borrowed generally is 10.9% p.a. (2008: 11.4%p.a.)

NOTE 4. Contributed equity

Issued and paid-up ordinary share capital Balance at the beginning of the period Shares issued during the period: - to sophisticated investors @ 39 cents per share - to repay loan @ 40 cents per share - to employees @ 40 cents per share - DRP	Consolidated 30 June 2009 Consolidated 30 June 2008 shares $ shares $ 27,676,856 21,144,955 27,275,000 20,893,237 2,307,694 900,000 - - 250,000 100,000 - - 25,000 10,000 933,630 361,053 401,856 251,718
	31,193,180 22,516,008 27,676,856 21,144,955

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MONEY 3 Corporation Limited

year ended 30 June 2009

NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009

NOTE 5. Trade and other receivables

Net trade receivables Allowance for doubtful debts Advances to controlled entities Current receivables Non-current receivables	Consolidated Consolidated 2009 2008 $ $ 8,541,018 8,290,681 (479,207) (415,463)
	8,061,811 7,875,218 - -
	8,061,811 7,875,218
	7,183,508 6,877,875
	878,303 997,343

Net trade receivables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interest rate method, which represents gross amount to be received from customer less deferred revenue relating to application, credit and monthly account keeping fees charged on personal loans. Prior year receivables have been restated on this basis, rather than the deferred revenue being separately disclosed. This reclassification reduces each of current assets and current liabilities by $2,730,759 (2008: $2,923,763) and has no implications for equity of profit in the income statement.

Net trade receivables consist of the following:

Gross trade receivables Less Deferred revenue Net trade receivables	Consolidated Consolidated 2009 2008 $ $ 11,271,777 11,214,444 (2,730,759) (2,923,763)
	8,541,018 8,290,681

NOTE 6. Segment information

Segment information is not provided as the Company operates in one business segment being the short term cash loan industry and one geographical segment being Australia.

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